between HSBC v's Coventry building society

keepsim

Hi

I'm first time buyer and new to this forum as well. I'm bit confused about picking up the right mortgage and thought the experience guys could guide me.

I need to pick up between HSBC v's Coventry building society.

Here are some stats 25yr term
HSBC
2yr fixed ~ 2.39%
Booking + Val fee =448
Overpayment allowed ~ 20%


coventry building society
2yr Fixed ~ 2.49%
Booking +Val fee = Zero
Overpayment allowed ~10%

Confusion

a) I have no experience of dealing with Building Society vs I bank with HSBC, are there any pro/cons of building society over banks

b) If I compare just for a 2 yr period HSBC is about £300 more expensive, but it gives me flexibility to overpay 10%.


c) I dont want surprices/hassales and prefer easy dealing so considering me as first time buyer which is better deal ?

I know this for many could be no brainer but advices with reason would be helpful.

many thanks

Thrugelmir

What are the follow on interest rates after the 2 years has expired?

Running_On_Empty

The service you will receive from the Coventry Building Society will far exceed that from hsbc. For a start, their call centre is in coventry not india, they do not have shareholders creaming off the profits and they will treat you as a human being and not just a number.

keepsim

Thrugelmir wrote: »

What are the follow on interest rates after the 2 years has expired?

HSBC 3.94%
Coventary 4.74%

Thrugelmir

keepsim wrote: »

HSBC 3.94%
Coventary 4.74%

Maybe worth factoring this in.

Remortgaging to another lender isn't cheap. Far more than £300.

keepsim

Thrugelmir wrote: »

Maybe worth factoring this in.

Remortgaging to another lender isn't cheap. Far more than £300.

Valid point

As I mentioned I am first time buyer , so isn't after first 2yr fixed period people again go for what 2yr fixed product is available ?

Lastly, If you were me which one would you choose

keepsim

Thrugelmir

As I mentioned I am first time buyer , so isn't after first 2yr fixed period people again go for what 2yr fixed product is available ?

Lastly, If you were me which one would you choose

Thrugelmir

Do you meet HSBC's lending criteria, in particular income?

silvercar

keepsim wrote: »

HSBC 3.94%
Coventary 4.74%

Coventry usually offer very decent deals for existing customers at the end of their deal. So after 2 years there should be an array of options to choose from rather than go on to their SVR. (In fact that quoted SVR is so high, I am surprised if anyone is actually on it.)

No guarantees on the future, but looking what deals are available now to existing customers at the end of their deal should give you an idea.

http://www.coventrybuildingsociety.co.uk/mortgages/existing-members/switching-deals.aspx

keepsim

Thrugelmir wrote: »

Do you meet HSBC's lending criteria, in particular income?

Yes I do qualify for both HSBC and Coventry

getmore4less

How much are you borrowing?

found it
https://forums.moneysavingexpert.com/discussion/5122621

£132K

HSBC
2yr fixed ~ 2.39%
Booking + Val fee =448
Overpayment allowed ~ 20%


add the fees £587pm


coventry building society
2yr Fixed ~ 2.49%
Booking +Val fee = Zero
Overpayment allowed ~10%

£592pm

pay £592 on both after 2 years

1: £124,388
2: £124,181

£207 difference.